A popular Roseburg marijuana dispensary is being fined nearly $6,000 after it was caught violating several state regulations, including advertising its products to minors by posting images of the cartoon characters Scooby-Doo and Shaggy on its Facebook page.
FX420 dispensary, located at 161 NE Garden Valley Blvd., agreed to pay $5,775 after inspectors with the Oregon Liquor Control Commission found five violations of state regulations. A stipulated settlement agreement between FX420, which is owned by Rob Schuster, and the OLCC was approved by the agency at its monthly meeting on Dec. 19.
Two of the violations were discovered in September of 2018, and involved postings on the FX420 Facebook page. One of the postings included the images of Scooby-Doo and Shaggy with the caption “The 4 stages of edibles,” which the OLCC determined was “advertising that could reasonably be considered to target individuals under the age of 21.”
The second Facebook posting contained the text “Scientific Study Proves THC Relieves Pain” with the caption “MMJ is medicine.” That posting amounted to advertising “that made claims that recreational marijuana has curative or therapeutic effects,” the OLCC said.
Three other violations were uncovered in January of this year. In those instances FX420 committed the following violations of state regulations:
- Added a safe and unsecured refrigerator used to store marijuana items to the store and failed to notify the commission prior to making those changes.
- Failed to enter the necessary data into the state Cannabis Tracking System that fully and transparently accounted for all inventory tracking activities. Specifically, FX420 listed 77 packages as having negative amounts, and 19 packages that had a different weight recorded in the CTS than what was actually in the store’s inventory.
- Failed to properly tag all marijuana inventory with a unique identification tag. Specifically, FX420 had multiple bags of marijuana in its safes containing buds and/or shake that did not have any UID tags, as required.
The total sanction initially proposed by the OLCC was a 48-day suspension of business activities or a $7,920.00 civil penalty. However, FX420 requested a hearing and agreed to enter into a settlement agreement that called for either a $5,775 penalty or 35-day suspension, according to the OLCC. FX420 chose the $5,775 penalty.
FX420 has until 5 p.m. on Jan. 15 to pay the penalty.
Schuster said the infractions are a year old, but said as owner of FX420, he takes responsibility for them and will pay the penalty. The three violations that had to do with improper tagging and tracking of products was the work of a manager who wasn’t doing her job, Schuster said, and he fired her as soon as he learned of the violations.
Schuster said the other two violations involving improper marketing was the work of someone he hired to help out with advertising. That person was also fired as soon as those issues came to light, he said.
“My employees screwed up, but ultimately, I’m the owner of the company, so it’s my responsibility,” he said. “They knew better but it’s just the nature of the business.”
This isn’t the first time Schuster and FX420 have made the news.
In June 2018, Schuster filed a $200,000 lawsuit against Kenneth Hyde, co-owner of FX420 at the time, and Hyde’s family, for not only failing to support the store as agreed but actively trying to hurt the company.
The case was dismissed in October of this year, days before it was scheduled for trial, after the parties reached a settlement.
Schuster made headlines more recently when he asked the Roseburg City Council to loosen its restrictions on dispensaries and allow him to stay open longer hours and offer a delivery service for his customers.
His request, made earlier this month, is being reviewed by city officials, who said they expect to take the matter up sometime in January.